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UN Refugee Agency Faces Severe Funding Crisis, Threatening Aid to Over 11 Million People

UN Refugee Agency Faces Severe Funding Crisis, Threatening Aid to Over 11 Million People
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The United Nations refugee agency (UNHCR) has issued a stark warning that more than 11 million refugees risk losing access to critical humanitarian aid due to a dramatic funding shortfall, Al Jazeera reported. According to a report released on July 18, 2025, UNHCR has received only 23 percent of its $10.6 billion funding target for the year, projecting a total budget of just $3.5 billion by year-end. This shortfall imperils aid for approximately 122 million displaced people worldwide.

Dominique Hyde, UNHCR’s director of external relations, described the funding situation as “dramatic,” emphasizing fears that up to 11.6 million refugees and forcibly displaced individuals may lose vital assistance. The crisis has been worsened by significant cuts from the United States, which contributed 40 percent of UNHCR’s funding in 2024, amounting to over $2 billion.

Since President Donald Trump’s administration took office in January, funding reductions to the US Agency for International Development (USAID) and related programs have halted or suspended $1.4 billion worth of aid. This includes a 60 percent reduction in financial aid and emergency relief supplies in countries such as Sudan, Myanmar, and Afghanistan.

Critical services affected include medical aid, education, shelter, nutrition, and protection. In Bangladesh, education for roughly 230,000 Rohingya refugee children is at risk. Women and girls face disproportionate impacts, with a quarter of gender-based violence programs cut. UNHCR is also downsizing globally, cutting 3,500 staff positions.

The funding crisis compounds warnings from the UN’s 2025 Global AIDS Update, highlighting risks of reversing decades of progress on health due to halted foreign aid.

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